| Buyers Glossary |
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Absorption Rate * Ratio of the number of properties in an area that have been sold against the number available; used to show the volatility of a market Accessory Building * A building separate from the main structure on a property; often used for a specific purpose such as a workshop or shed Accretion * The natural growth of a piece of land resulting from forces of nature Addendum * A supplement to the Contract of Purchase and Sale that contains additional information pertinent to the property Amenity * Any feature of a property that increases its value or desirability Appraisal * A carefully documented opinion of value; most commonly derived using recent sales of comparable properties by a licensed professional appraiser Appraised Value * The estimated fair market value of a property as developed by a licensed, certified appraiser following accepted appraisal principals Appreciation * The natural rise in property value due to market forces Arms Length Transaction * Any transaction in which the 2 parties are independent and have no obvious common interests Assessed Value * The value of a property according to jurisdictional tax assessment Bona Fide * Any genuine offer, made without intent to defraud or deceive Bridge Financing * An interim loan made to facilitate the purchase of a new home before the buyer’s current residence sells and its equity is available to fund the new purchase Brokerage * Is the real estate company under which the individual is licensed Building Code * Regulations that ensure the safety and material compliance of new construction within a municipality Bungalow * A 1 storey home-style, dating back to the early 20th century; often characterized by a low-pitched roof Cape Cod Colonial * A home-style made popular in New England, often characterized by a steep roof with gables Caveat Emptor * “Buyer beware”; the buyer is responsible for verifying any and all claims by the seller of the property Certificate of Occupancy * Issued by an appropriate jurisdictional entity, typically for a new home, it certifies that a building complies with all building codes and is safe for use Certificate of Title * A document designating the legal owner of a parcel of real estate Chain of Title * The complete history of ownership of a piece of property Chattel * A moveable article of property, any article of tangible property other than land, buildings, and other things annexed to land Clear Title * Ownership of property that is not encumbered by any counter-claim or lien Closing * The sale of a property is consummated with the buyer completing all applicable documentation, including signing the mortgage obligation and paying all appropriate costs associated with the sale Commission * A fee negotiated by an agent to compensate for the effort expended to sell or purchase a property Concessions * Additional value granted by a buyer or seller to entice another party to complete a deal Contract * A legally binding agreement between 2 parties Deposit * Cash given along with an offer to purchase property Depreciation * The natural decline in value of the improvement due to market forces or deterioration of the improvement Distressed Property * A mortgaged property which has been foreclosed on Double End * When you are the listing agent and also the selling agent as well. You are dealing with both the listing and selling side Down Payment * An amount paid in cash for a property with the intent to mortgage the remaining amount due Easement * The right of a non-owner of property to exert control over a portion or all of the property Effective Age * The subjective, estimated age of a property based on its condition, rather than the actual time since it was built Encroachment * A building or other improvement on one property which invades another property or restricts its usage Encumbrance * A claim against a property, such as mortgages, liens, easements, and rights of way Exclusive Listing * An agreement between the owner of a property and a real estate agent giving the agent the exclusive right to sell the property FAQ * Frequently Asked Question Feature Sheet * Information sheet for the home for sale showing all pertinent information that a buyer would need to know Fee Simple * A complete unencumbered ownership right in a piece of property Fixture * Any piece of personal property which becomes permanently affixed to a piece of real property FSBO * For sale by owner Gable Roof * A steeply angled, triangular roof Gambrel Roof * A "barn-like” roof, where the upper portion of the roof is less steeply angled than the lower part Georgian * A classic English style house characterized by simple rectangular shape and multiple stories Grade * The slope of land around a building Grantee * Any person who is given ownership of a piece of property Grantor * Any person who gives away ownership of a piece of property GST * Goods and services tax Home Inspection * A complete examination of a building to determine its structural integrity and uncover any defects in materials or workmanship which may adversely affect the property or decrease its value Homeowner’s Warranty * An insurance policy covering the repair of systems and appliances within the home for the coverage period Latent Defects * Any defect in a piece of property which is not readily apparent but which has an impact of the value (e.g. dry rot) Legal Description * The description of a piece of property identifying its specific location in terms established by the municipality or other jurisdiction in which the property resides Licensee * Is the managing broker, associate broker and/or representative of a Brokerage Lien * Any claim against a piece of property resulting from a debt or other obligation Multiple Listing Service (MLS) * A computerized database of real estate listings and sales; it is operated by the Boards in conjunction with other real estate boards and The Canadian Real Estate Association New England Colonial * A home-style dating from early American history typified by a 2 storey building with clapboard siding Non-Conforming Use * The use of land for purposes contrary to the applicable municipal zoning specifications PDS (Property Disclosure Statement) * A form that the seller completes disclosing general and structural details; the seller is responsible for the accuracy of the answers on the form as it constitutes a representation under any Contract of Purchase and Sale if so agreed, in writing, by the seller and the buyer Plat * A plan or a chart of a piece of land which lays out existing or planned streets, lots, or other improvements Pre-Qualification * Less formal than pre-approval, is usually a written statement from a loan officer indicating an opinion that the borrower will be able to become approved for a mortgage loan PTT (Property Transfer Tax) * A Provincial Government Tax which applies on all transfers of Real Estate and is payable on the completion date; the rate of tax is 1% on the first $200,000 of the purchase price and 2% on the balance of the purchase price over $200,000; payable at completion at the lawyer’s office and payable with a separate cheque to the Minister of Finance Purchase Agreement * A written contract signed by the buyer and seller stating the terms and conditions under which a property will be sold Rancher * Home style typified by a single storey, low roof construction Raw Land * Any land which has not been developed Realtylink * Master database of MLS listings in Greater Vancouver Right of First Refusal * An agreement giving a person the first opportunity to buy or lease a property before the owner offers it for sale to others Survey * A specific map of a piece of property which includes the legal boundaries and any improvements or features of the land; also depict rights of way, easements, and encroachments Sweat Equity * Method where the owner creates equity in a property by personally constructing improvements rather than paying to have them constructed Title * A document which serves as proof of ownership Title Search * Research on a property’s title history to ensure no outstanding claims exist Transfer of ownership * Any means by which the ownership of a property changes hands Tudor * Home-style typified by exposed stone, wood and brick construction; Unencumbered Property * Any property which has no outstanding claims or liens against it Useful Life * The span of time over which a property can be used or can provide benefits to its owner Webforms * Accessed through Realtorlink, where realtors can create and save a personalized form toolkit for buyers and sellers Working With a Realtor * A form that is used to provide an explanation of the relationship between you and a realtor and of the collection, use and disclosure of personal information
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